Developed by Mysten Labs, the same team behind the Sui blockchain, Walrus is designed to address the perceived limitations in existing decentralized storage protocols, particularly concerning scalability, security, and flexibility. Overall, the focus is clear: deliver faster and more cost-effective on-chain storage.

At its core, Walrus operates as a permissionless, distributed storage network. Data is spread across a resilient network of independent storage nodes. Beyond core storage, Walrus also supports Walrus Sites for decentralized web hosting and offers robust developer tools for seamless integration into applications.

The WAL token is central to this ecosystem, details as to its token utility includes:

• Payment for Storage: WAL is the designated currency for covering fees associated with using Walrus storage, compensating the network for data storage and delivery.
• Network Security: As a proof-of-stake token, WAL contributes to the security of the Walrus network. Holders can stake WAL (either by running a storage node or delegating to one) to participate in the network's security and operations. The protocol employs a delegated staking mechanism where storage nodes compete to attract stake.
• Governance: WAL also functions as a governance token, allowing the community to participate in decisions regarding protocol parameters and upgrades. This mechanism is intended to provide token holders, especially node operators, with a voice in shaping network settings.
• Deflationary Mechanisms: The protocol incorporates token burning features through "churn fees" (imposed when stakers frequently move their stake between nodes) and "slashing penalties" (applied when storage nodes perform poorly). A portion of these fees and penalties is burned.

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